The Decision Achieves 2030 Targets and Increases the Spread of Non-Oil Exports

The decision to abolish the fee on expatriate labor in licensed industrial establishments comes as an extension of the support and empowerment that the industrial sector receives from the Crown Prince. The industrial sector constitutes one of the fundamental pillars in achieving the targets of Saudi Vision 2030 and is considered a key driver of economic development in the Kingdom. The decision also reflects the belief in the importance of this strategic sector and the keenness to continue the successes achieved during the first and second exemption periods.

This decision reflects the Crown Prince's interest in this vital sector and represents a decisive step to enhance the global competitiveness of Saudi industry, increase the reach and spread of non-oil exports in various global markets, and enable industrial establishments to invest in developing their operations and increasing their productivity, in addition to its role in providing more job opportunities.

Promising Opportunities, Programs, and Incentives

The industrial sector is considered one of the strategic attractive sectors within Saudi Vision 2030 due to its promising investment opportunities and broad governmental interest. This is represented by the abolition of the fee on expatriate labor in industrial establishments and the presence of enabling incentives within the industry and mineral wealth system that help create a broad industrial base, continue the Kingdom's economic growth, increase the reach and spread of non-oil exports in various global markets, and enable industrial establishments to invest in developing their operations and increasing their productivity. The decision acts as a stimulus for the growth of small and medium industrial enterprises, alleviating their financial burdens and contributing to ensuring their continuity and development in the long term, adopting Fourth Industrial Revolution technologies such as automation and production efficiency through programs and incentives launched by the industry system, including the Future Factories Program.

The decision represents a confirmation of the continuous pursuit to enhance the growth of the industrial sector in the Kingdom, based on the successes achieved during the previous exemption periods. The sector achieved qualitative leaps from 2019 to the end of 2024, during which the number of industrial establishments increased from 8,822 factories to more than 12,000 establishments. The total value of industrial investments rose by 35%, from 908 billion riyals to 1.22 trillion riyals. Non-oil exports grew by 16%, increasing in value from 187 billion riyals to 217 billion riyals. Employment grew by 74%, from 488,000 employees to 847,000 employees. The Saudization rate increased from 29% to 31%, and the industrial GDP rose by 56%, from 322 billion riyals to more than 501 billion riyals. These achievements would not have been possible without the great support that the industry and mineral wealth system receives from the leadership.

The decision indicates Saudi Arabia's commitment to achieving its vision of becoming a leading global industrial power, including tripling the industrial GDP to reach 895 billion riyals by 2035, offering more than 800 investment opportunities worth one trillion riyals, enabling international investments in various industrial activities, and enacting legislation that ensures sustainability and stability.